Alibaba logs best rally in five weeks on SoftBank statement while Tesla rival Xpeng soars on Stock Connect inclusion
- Tech Index surged by the most in about three weeks on Alibaba’s rally after SoftBank rejected reports it could be selling its stake in e-commerce group
- EV maker Xpeng jumped by record after the stock was added to the Southbound leg of the Stock Connect, giving trading access to mainland investors
The Hang Seng Index advanced 2.1 per cent to 24,829.99 at the close of Wednesday trading. The Tech Index strengthened 3.7 per cent, the most in almost three weeks, while China’s Shanghai Composite Index gained 0.8 per cent.
The stock had lost more than 7 per cent in value this week after the Hangzhou-based company filed on February 4 to register 1 billion new American depositary shares, prompting analysts to speculate about SoftBank’s potential sale.
Alibaba holds a big sway on the local market as the stock carries more than 7 per cent weight in the benchmark and tech index.
“SoftBank’s clarification eased some market concerns,” said Mark Po, analyst at China Galaxy International Securities. “As a whole, the rebound might only be slight now but we may see some policy direction changing” to bring more impact to the market, he added.
On the mainland, Asiainfo Security Technologies jumped 28 per cent on its first day of trading.
Markets in the Asian Pacific region rose. The Nikkei 225 in Japan strengthened 1.1 per cent while Australian and Korean stocks rose at least 0.8 per cent.